Reps. Ed Royce (R-CA) and Ed Perlmutter (D-CO) introduced H.R. 3468, the Credit Union Share Insurance Fund Parity Act late Wednesday. The act will allow the share insurance fund to cover trust accounts that are in the name of nonmembers. On a voice vote Thursday morning, the bill passed the House Financial Services Committee. It moves on to the full House.
The bill would pertain to accounts such as Interest on Lawyers Trust Accounts (IOLTAs) so they are treated for deposit insurance purposes on the same basis as similar accounts insured by the Federal Deposit Insurance Corporation. CUNA sent a letter of support letting the House Financial Services Committee know that this bill corrects an NCUA interpretation of the Federal Credit Union Act. The current interpretation puts credit unions at a disadvantage.